Global Essential Oils Market Size Set to Blossom at a Remarkable 11.8% CAGR, Surpassing US $15.3 Billion by 2027

Chicago, June 14, 2023 (GLOBE NEWSWIRE) — The global essential oils market reached a valuation of USD 8.8 billion in 2022 and is projected to grow at a CAGR of 11.8% from 2022 to 2027, reaching a market value of USD 15.3 billion by 2027.

The essential oils market is experiencing significant growth driven by key end-use industries including food and beverages, beauty and personal care, and aromatherapy. These oils are increasingly being adopted in various new industries due to their health benefits and minimal side effects. The demand for essential oils in North America is rising as consumers prioritize a healthy lifestyle and seek ingredient transparency. Furthermore, the applications of essential oils in research and development (R&D) and product development are expanding rapidly, which is expected to further propel the global market in the years to come.

Download PDF brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=119674487

Key Industry Development:

In recent years, the essential oils market has experienced notable developments. Growing consumer demand for natural and organic products has fueled the market’s expansion, with essential oils finding applications in skincare, cosmetics, food and beverages, cleaning products, and pharmaceuticals. Sustainability and ethical sourcing have gained importance, leading to the adoption of fair-trade practices and certifications. Technological advancements in extraction techniques and packaging have improved the quality and shelf life of essential oils. The rising popularity of aromatherapy has further contributed to market growth. E-commerce has transformed the distribution landscape, enabling direct-to-consumer sales and offering a wider variety of essential oils. Additionally, product innovation remains a key driver, with companies introducing new blends, customized formulations, and innovative delivery systems to meet evolving consumer preferences.

Report Scope & Segmentation:

Key Takeaways:

• Growing consumer demand for natural and organic products
• Increasing applications in skincare, cosmetics, food and beverages, cleaning products, and pharmaceuticals
• Focus on sustainability and ethical sourcing practices.
• Technological advancements in extraction techniques and packaging
• Rising popularity of aromatherapy
• E-commerce and direct-to-consumer sales driving accessibility
• Continuous product innovation with new blends, customized formulations, and innovative delivery systems.

Speak to Analyst for more Information: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=119674487

Drivers and Opportunities:

Drivers:

The aromatherapy industry has been experiencing a consistent upward trend due to several factors. Globally, there is a growing demand for aromatherapy products and premium fragrances, driven by the expanding hospitality sector and consumer preference for natural alternatives. The modern sedentary lifestyle has led to increased levels of stress and anxiety worldwide, resulting in a higher demand for aromatherapy. Aromatherapy has been clinically proven to address such conditions by enhancing cognitive performance, improving mood, and boosting overall performance ability.

Stakeholders in the industry are recognizing the functional benefits of essential oils and aromatherapy, and they are incorporating them into their offerings. The fragrance industry has shifted from traditional perfumes to focus on wellness and self-care, with aromatherapy becoming a vital component of fragrance, beauty, and wellness products. This integration has further fueled the growth of the aromatherapy industry.

Opportunities:

There are significant opportunities for industry, particularly in developing countries. The demand for essential oils is expected to surge in countries like China and India, driven by increasing consumer preference and targeted marketing campaigns highlighting the health benefits of essential oils. These developing nations, experiencing population growth and a rise in the production of food, beverages, and cosmetics, will contribute to the growing demand for essential oils. Countries with economic challenges will witness moderate growth, while the new and emerging markets in the Asia Pacific region are expected to experience exponential growth. The suppliers of essential oils stand to benefit from this high demand, especially considering the relatively low extraction costs associated with these oils.

Segments:

The food and beverage industry is embracing the use of essential oils in various products, aligning with the growing trend of “clean label.”

Essential oils, known for their health benefits and natural essence, are highly sought after by consumers. The largest market segment for essential oils is the food and beverage industry, where they are used for color, flavor, and fragrance in end products.

Commonly used essential oils in the food and beverage industry include orange oil, lemon oil, cardamom essential oil, peppermint oil, and lime oil. Lemon essential oil, for example, is widely utilized as a flavoring agent in fruit juices, jams, and bakery products. With regulatory authorities deeming citrus essential oils safe for consumption, the food and beverage industry continues to incorporate these oils into multiple products, catering to the “clean label” trend. Clean labels and a focus on positive nutrition are gaining popularity among consumers, particularly Millennials and Gen Z. Stricter food standards and increasing consumer awareness regarding the health risks associated with artificial additives drive the preference for natural ingredients like essential oils. Food and beverage brands are embracing the clean label trend in their new product developments, thereby driving the demand for essential oils.

Essential oils also present significant business opportunities for the floriculture market.

Flowers known for their aromatic properties, such as rose, jasmine, lavender, and tuberose, yield valuable essential oils. These oils are widely used in perfumery production and offer various benefits when incorporated into finished products, including pleasant aroma, hair care effects, and improved skin elasticity. For optimal essential oil production, careful selection of cultivation locations with suitable climate and soil conditions, minimal use of pesticides and fertilizers, and proper handling during transportation are crucial. Traceability and transparency in the supply chain are also gaining importance, while manufacturers emphasize sustainable procurement practices.

Inquiry Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=119674487

Distillation is considered the most cost-effective and economical method for extracting essential oils.

This method is particularly suitable for aromatic compounds and offers various advantages, including its ability to retain the beneficial properties of the oil. Distillation can be carried out using simple equipment, conveniently located near the plant production site.

Steam distillation is a popular technique due to its simplicity and low investment requirements. It is widely used for extracting and isolating oleoresins and essential oils from plants, making it suitable for natural product applications. One of the key benefits of steam distillation is its ability to control the amount of steam used, ensuring minimal thermal decomposition of the oil constituents.

Indian Aroma Exports, an essential oil manufacturer based in India, offers a diverse range of essential oils obtained through steam distillation. This method is primarily utilized to extract essential oils for applications in perfumery, food, and pharmaceutical industries. It is also capable of distilling herbs, spices, and flowers. During the steam distillation process, the plant material is mixed with water and heated to create a vapor, a process known as hydro-distillation. The vapor containing the essential oil is then collected and condensed, separating it from the water fraction.

In Europe, the demand for essential oils is driven by the growing aromatherapy sector.

European consumers prefer value-added food products, and essential oils find extensive applications in this domain. The increasing demand for high-quality and environmentally friendly products fuels the European market. Moreover, Europe is a significant importer of essential oils, particularly due to the rising consumer demand for aromatherapy cosmetics. The European cosmetics and personal care market, one of the largest globally, presents attractive opportunities for suppliers and producers of essential oils from developing countries. Consumer preferences for chemical-free cosmetics products contribute to market growth. Europe’s regulatory environment makes it an important market for companies in the essential oil industry, with key players including Symrise (Germany), ROBERTET SA (France), MANE (France), and NHR Organic Oils (UK).

List of Key Players Mentioned in the Report:

• Cargill, Incorporated (US)
• DSM (Netherlands)
• Givaudan (Switzerland)
• International Flavors & Fragrances Inc. (US)
• Sensient Technologies Corporation (US)
• Symrise (Germany)
• Robertet SA (France)
• MANE (France)
• doTERRA (US)
• NOW Foods (US)
• Lebermuth, Inc. (US)
• BIOLANDES (France)
• Norex Flavours Private Limited (India)
• India Essential Oils (India).

Speak to Analyst for more Information: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=119674487

Browse Adjacent Reports @ Food and Beverage Market Research Reports & Consulting

See Other Reports – Food & Beverages Industry:

Functional Food Ingredients Market

Brewery Equipment Market